About Donut Connection Cooperative Franchise
Donut Connection Cooperative Corporation functions as a purchasing cooperative, supporting baker-retailers who operate retail outlets.
These Members primarily sell donuts, baked goods, and non-alcoholic beverages, or specialize in coffee-only shops.
Franchisees are involved in the daily operations, including baking, inventory management, and direct sales to local customers.
Donut Connection Cooperative Franchise Cost & Fees
Minimum Investment
$35K
Average Investment
$67K
Maximum Investment
$100K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $500 | One-time payment upon signing |
| Royalty Fee | No traditional royalty; revenue derived from supplier rebates, with patronage dividends distributed to members. of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Not to exceed $500 a year | National brand fund |
| Total Investment Range | $35,270 – $99,643 | Includes build-out, inventory, working capital |
The investment range of $35K–$100K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (No traditional royalty; revenue derived from supplier rebates, with patronage dividends distributed to members.) and marketing fee (Not to exceed $500 a year) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Capital Stock Subscription | $500 | $500 |
| Signage | $1,270 | $7,393 |
| Training | $3,500 | $20,000 |
| Shop Development | $5,000 | $36,750 |
| Opening Inventory (prior to and during first two months of operation) | $15,000 | $20,000 |
| Additional funds (prior to and during first two months of operation) | $10,000 | $15,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $3,500 |
| Late Payment | Not to exceed 12% on amount due and payable |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | For new Members with less than one year of experience, initial training is three weeks, followed by five working days of on-site training at the Member's donut shop. |
| Classroom Training | 78 hours |
| On-the-Job Training | 40 hours |
| Training Location | Washington, PA; Carnegie, PA; Member's donut shop |
| Additional Training | Additional training programs and/or refresher courses are not required. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | Two (2) mile radius |
| Description | The Company will not approve a new Member seeking to establish a DONUT CONNECTION® Shop within a two-mile radius of an existing Member’s donut or coffee shop. This two-mile radius constitutes an exclusive territory, not contingent on sales volume or market penetration. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | Indefinite |
| Renewal Term | Not Applicable |
| Renewal Conditions | Because the term is indefinite, there are no conditions under which a Member is required to renew or extend. |
| Transfer Fee | $3,500 |
| Transfer Conditions | Transfers require prior written approval by the Board of Directors, which may not be unreasonably withheld. The Member must be current in financial obligations to the Company and Authorized Distributors. |
| Termination for Cause | Termination by the Company can occur for reasons such as failure to pay amounts due, failure to maintain the shop, unauthorized transfer of shares, providing false information, felony conviction, or repeated non-compliance with Bylaws or Membership Agreement. |
| Non-Compete Period | None |
| Non-Compete Details | There are no non-competition covenants during or after the franchise term. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Although not required under the Bylaws, the Company recommends that the owner or one of the principal owners of the Member business participate personally and directly in its operation. |
| Required Suppliers | Members are required to purchase coffee, sugar, mixes, fillings, and paper products from Authorized Distributors for donut shops. For coffee shops, required purchases include coffee, cups, and lids from Authorized Distributors. |
| Supply Restrictions | Members must purchase total requirements for certain inventory and supplies from Authorized Distributors. Alternative suppliers may be approved if they offer equal or better products at a competitive price. |
| Franchisor Revenue from Suppliers | The Company receives rebates from Authorized Distributors: $3.20 for each proprietary product purchased, five cents for every pound of coffee, and fifty cents for each fifty-pound bag of yeast raised donut mix purchased by a Member. This revenue offsets the cost of providing Member services. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | The Company does not offer direct or indirect financing, nor does it guarantee any note, lease, or obligation. |
Donut Connection Cooperative Franchise Earnings — Item 19
Donut Connection Cooperative does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Donut Connection Cooperative does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Donut Connection Cooperative Litigation & Risk Flags
Clean Litigation RecordDonut Connection Cooperative has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Donut Connection Cooperative System Growth
Total Units
57
Franchised
57
Company-Owned
0
Donut Connection Cooperative currently operates 57 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2018 | 0 | 10 | 57 |
| 2019 | 0 | 0 | 57 |
| 2020 | 0 | 0 | 57 |
Transfers: 0 | Closures: 10
State Registrations
Registered in 12 states: CA, HI, IL, IN, MD, NY, ND, RI, SD, VA, WA, WI
Donut Connection Cooperative Franchise — FAQ
The total investment to open a Donut Connection Cooperative franchise ranges from $35,270 to $99,643, per their Franchise Disclosure Document. This includes the initial franchise fee of $500. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Donut Connection Cooperative charges a royalty fee of No traditional royalty; revenue derived from supplier rebates, with patronage dividends distributed to members. of gross sales, plus a Not to exceed $500 a year contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Donut Connection Cooperative Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Donut Connection Cooperative to ensure you have the most up-to-date version.
Donut Connection Cooperative does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Donut Connection Cooperative has been franchising since 1994. The FDD shows an investment range of $35,270-$99,643, a No traditional royalty; revenue derived from supplier rebates, with patronage dividends distributed to members. royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $500 and the total investment ranges from $35,270 to $99,643 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Donut Connection Cooperative and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Donut Connection Cooperative or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com